UK Employment Rights Bill to Cost Businesses Up to £5 Billion Annually, Small Firms Hit Hardest

Oct 21, 2024, 01:40 PM

The UK Labour government's Employment Rights Bill is projected to cost businesses up to £5 billion annually, according to an official impact assessment. The assessment indicates that small firms will be disproportionately affected, potentially making employers less willing to hire workers. Despite the high costs, the government suggests the reforms could have a small positive impact on economic growth. The analysis also mentions that firms may face up to a 1.5% rise in employment costs due to the new regulations. The government insists that the benefits will outweigh the costs, though some estimates suggest the cost could be as low as £4.5 billion.